The cryptocurrency market is recovering after witnessing a major collapse yesterday. Bitcoin is leading this recovery, rising above $67,000 as Pakistan facilitated peace talks between the US and Iran. The United States also indicated that it has no immediate plans to invade Iran, which provided a positive for the market.
Cryptocurrency market rebounds as US-Iran peace talks add optimism
The cryptocurrency market rebounded today, with the total market reaching $2.3 trillion from an intraday low of around $2.26 trillion, according to TradingView data. Bitcoin price It rose significantly by almost 2%, rising above the psychological level of $97,000.
The recovery in the cryptocurrency market comes as Pakistan facilitates peace talks between the United States and Iran. It is worth noting that Pakistan was responsible for conveying the US 15-point proposal to Iran, which Iran responded to on its own terms to end the war.
Meanwhile, in Share XPakistani Prime Minister Shahbaz Sharif revealed that he had a telephone conversation with Iranian President Masoud Pezeshkian regarding the US-Iran war. He also stated that his country is cooperating with the United States, the Gulf states and Islamic countries to facilitate dialogue and stop escalation.
However, it remains uncertain when the US and Iran can sit down for peace talks, with Pakistan proposing Islamabad as the venue for negotiations. It is worth noting that the recovery of the cryptocurrency market also comes with… United States indicated It has no immediate plans to invade Iran.
This has helped allay fears that the United States will deploy ground forces in Iran soon after deploying more forces to the Middle East. The deployment of troops to Iran threatens to escalate tensions in the war, which is now entering its fifth week.
Prices are still at risk of falling
The cryptocurrency market remains at risk of a larger decline as the Houthis join the US-Iran war, launching missiles into Israel today. The Iranian-backed group pledged to continue these strikes until the US-Israeli strikes against Iran and its proxies stop.
The Houthis’ entry into the war is considered an important matter, as they could disrupt navigation in the Bab al-Mandab Strait, which could negatively affect the global economy and put pressure on the global economy. Crypto prices. The potential closure of this strait could mean that the world would lose another 6 million barrels of global oil supply, further increasing oil prices.
This is in addition to the Strait of Hormuz, which Iran announced again yesterday that it remains closed despite the ongoing peace talks. The closure of the Strait of Hormuz, through which about 20% of global oil supplies pass, has largely contributed to oil prices reaching their highest levels in several years. A further rise in oil prices would put downward pressure on the cryptocurrency market, as market participants are concerned about inflationary pressures.
